Session of 2024
HOUSE BILL No. 2645
By Committee on Education
Requested by Fred Patton on behalf of the State Board of Regents
1-31
AN ACT concerning postsecondary education; relating to the nursing
service scholarship program; removing limits on the amount of
scholarship awards and the number of scholarships; removing the
requirement to obtain a sponsor; modifying the terms and conditions
for interest accrual on repayment obligations; abolishing the nursing
service scholarship review committee; amending K.S.A. 74-3292, 74-
3293, 74-3294, 74-3295, 74-3296, 74-3297 and 74-3298 and repealing
the existing sections; also repealing K.S.A. 74-3299.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 74-3292 is hereby amended to read as follows: 74-
3292. As used in this act:
(a) "Committee" means the nursing service scholarship review
committee established under K.S.A. 74-3299, and amendments thereto.
(b) "Executive officer" means the chief executive officer of the state
board of regents appointed under K.S.A. 74-3203a, and amendments
thereto.
(c) "Mental health or treatment facility" means:
(1) Any private treatment facility as such term is defined in K.S.A.
59-29b46, and amendments thereto;
(2) any public treatment facility as such term is defined in K.S.A. 59-
29b46, and amendments thereto;
(3) any community mental health center organized pursuant to the
provisions of K.S.A. 19-4001 through 19-4015, and amendments thereto,
and licensed pursuant to K.S.A. 39-2001 et seq., and amendments thereto;
(4) any mental health clinic organized pursuant to the provisions of
K.S.A. 65-211 through 65-215, and amendments thereto, and licensed
pursuant to K.S.A. 39-2001 et seq., and amendments thereto;
(5) any psychiatric hospital, psychiatric residential treatment facility
or residential care facility as such terms are defined in K.S.A. 39-2002,
and amendments thereto;
(6) any hospital as defined in K.S.A. 65-425, and amendments
thereto, provided: (A) The hospital has a psychiatric unit; and (B) the
scholarship recipient is required to fulfill the nursing service scholarship's
employment obligations as an employee in the psychiatric unit of the
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hospital; or
(7) Osawatomie state hospital, Rainbow mental health facility, Larned
state hospital, Parsons state hospital and training center or the Kansas
neurological institute.
(d) "Rural area" means any county of this state other than Douglas,
Johnson, Sedgwick, Shawnee and Wyandotte counties.
(e)(b) "School of nursing" means a school within the state of Kansas
which that is approved by the state board of nursing to grant an associate
degree or a baccalaureate degree in professional nursing or a certificate of
completion in practical nursing and is:
(1) Under the control and supervision of the state board of regents;
(2) a municipal university; or
(3) a not-for-profit independent institution of higher education that
has its main campus or principal place of operation in Kansas, maintains
open enrollment as such term is defined in K.S.A. 74-32,120, and
amendments thereto, and is operated independently and not controlled or
administered by the state or any agency or subdivision thereof.
(f) "Sponsor" means any adult care home licensed under the adult
care home licensure act, any medical care facility licensed under K.S.A.
65-425 et seq., and amendments thereto, any home health agency licensed
under K.S.A. 65-5101 et seq., and amendments thereto, any local health
department as defined in K.S.A. 65-241, and amendments thereto, any
mental health or treatment facility and any state agency which employs
licensed practical nurses or licensed professional nurses.
Sec. 2. K.S.A. 74-3293 is hereby amended to read as follows: 74-
3293. (a) There is hereby established the nursing service scholarship
program. A scholarship may be awarded under the nursing service
scholarship program to any qualified nursing student enrolled in or
admitted to a school of nursing in a course of instruction leading to
licensure as a licensed professional nurse or licensed practical nurse. A
nursing student shall not be required to be a resident of Kansas to qualify
for a scholarship under the nursing service scholarship program. The
number of new scholarships awarded under the nursing service scholarship
program in each year shall not exceed 250. Of this number, except as
otherwise provided in this section, 100 scholarships shall be awarded to
nursing students whose sponsors are located in rural areas and who are
enrolled in a course of instruction leading to licensure as a registered
professional nurse, 50 scholarships shall be awarded to nursing students
enrolled in a course of instruction leading to licensure as a licensed
practical nurse and the remaining 100 scholarships shall be awarded to any
nursing students who have a sponsor and who are enrolled in a course of
instruction leading to licensure as a registered professional nurse. If all
scholarships authorized to be awarded under this section to nursing
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students whose sponsors are located in rural areas have not been awarded
by a date established by the state board of regents, the scholarships which
have not been awarded by that date may be awarded to nursing students
who have a sponsor and who are otherwise qualified to be awarded a
scholarship under the nursing service scholarship program. The
determination of the individuals qualified for such scholarships shall be
made by the executive officer after seeking advice from the committee.
Within each scholarship category prescribed by this subsection,
Scholarships shall be awarded on a priority basis to qualified applicants:
(1) Whose sponsor is a mental health or treatment facility; and (2) who
have the greatest financial need for such scholarships. To the extent
practicable and consistent with the other provisions of this section,
consideration shall be given to minority applicants.
(b) Scholarships awarded under the nursing service scholarship
program shall be awarded for the length of the course of instruction
leading to licensure as a licensed professional nurse or licensure as a
licensed practical nurse which the student is enrolled in or admitted to
unless otherwise terminated before the expiration of such period of time.
Such scholarships shall provide to a nursing student:
(1) If the nursing student is enrolled in a school of nursing operated
by a state educational institution, an amount not to exceed 70% of the in-
state tuition cost of attendance for an academic year at the school of
nursing in which the nursing student is enrolled; or
(2) if the nursing student is enrolled in a school of nursing not
operated by a state educational institution, the lesser of: (A) An amount not
to exceed 70% of the in-state tuition cost of attendance for a year at the
school of nursing in which the nursing student is enrolled; or (B) an
amount not to exceed 70% of the average amount of the in-state tuition
cost of attendance for a year at the schools of nursing operated by the state
educational institutions.
(c) The amount of each scholarship shall be established annually by
the executive officer and shall be financed equally by the sponsor of the
nursing student and by the state of Kansas except if:
(1) The sponsor is located in a rural area or is a health care facility
which has less than 100 beds, and is not a mental health or treatment
facility pursuant to K.S.A. 74-3292(c)(1), (c)(5) or (c)(6), and amendments
thereto, the total amount of the scholarship financed by such sponsor shall
not exceed $1,000 and the balance of such amount shall be paid by the
state of Kansas; or
(2) the sponsor is a mental health or treatment facility pursuant to
K.S.A. 74-3292(c)(2), (c)(3), (c)(4) or (c)(7), and amendments thereto, the
amount of the scholarship shall be paid by the state and such sponsor shall
not finance any amount of the scholarship.
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Sec. 3. K.S.A. 74-3294 is hereby amended to read as follows: 74-
3294. (a) An applicant for a scholarship under the nursing service
scholarship program shall provide to the executive officer, on forms
supplied by the executive officer, the following information:
(1) The name and address of the applicant;
(2) the name and address of the school of nursing in which the
applicant is enrolled or to which the applicant has been admitted; and
(3) the name and address of the sponsor of the applicant and a
verified copy of the agreement entered into by the applicant and the
sponsor in accordance with the provisions of the nursing service
scholarship program; and
(4) any additional information which that may be required by the
executive officer.
(b) As a condition to awarding a scholarship under the nursing
service scholarship program, the executive officer and the applicant for a
scholarship shall enter into an agreement which that shall require that the
scholarship recipient:
(1) Complete the required course of instruction and, within six
months after completion, attain licensure with the Kansas state board of
nursing as a licensed professional nurse or a licensed practical nurse;
(2) complete the free application for federal student aid for each
academic year for which scholarship funds are awarded under the
agreement;
(3) within six months after attaining licensure, engage in the full-time
practice of nursing, or the equivalent to full-time practice, in the
employment of the sponsor in accordance with the agreement entered into
by the scholarship recipient and the sponsor Kansas and continue such
full-time practice, or the equivalent to full-time practice, for the total
amount of time required under the agreement, which shall be for a period
of not less than the length of the course of instruction for which
scholarship assistance was provided, or engage in the part-time practice of
nursing in the employment of the sponsor in accordance with the
agreement entered into by the scholarship recipient and the sponsor
Kansas and continue such part-time practice for the total amount of time
required under the agreement, which shall be for a period of time that is
equivalent to full time, as determined by the state board of regents,
multiplied by the length of the course of instruction for which scholarship
assistance was provided;
(3)(4) commence the full-time practice of nursing, or the equivalent
to full-time practice, or the part-time practice of nursing, within six months
after registration in accordance with the agreement entered into by the
scholarship recipient and the sponsor, continue such practice for the total
amount of time required under the agreement, and comply with such other
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terms and conditions as may be specified by such agreement;
(4)(5) maintain records and make reports to the executive officer as
may be required by the executive officer to document the satisfaction of
the obligations under the nursing service scholarship program and under
agreements entered into with the sponsor pursuant thereto; and
(5)(6) upon failure to satisfy an agreement to engage in the full-time
practice of nursing, or the equivalent to full-time practice, or the part-time
practice of nursing, for the required period of time under any such
agreement, the requirements of the agreement, to repay to the state and to
the sponsor the amounts as provided in K.S.A. 74-3295, and amendments
thereto.
(c) Upon the awarding of a scholarship under the nursing service
scholarship program, the sponsor shall pay to the executive officer the
amount of such scholarship to be financed by the sponsor, if any. Each
such amount shall be deposited in the nursing service scholarship program
fund in accordance with K.S.A. 74-3298, and amendments thereto.
(d) The sponsorship by a scholarship recipient may be transferred
from one sponsor to another upon the agreement of the original sponsor,
the scholarship recipient and the sponsor to which the sponsorship is to be
transferred. The terms, conditions and obligations of the transferred
agreement shall be substantially similar to the terms, conditions and
obligations of the original agreement. No sponsorship shall be transferred
unless the agreement transferring such sponsorship provides for service in
a rural area or in a mental health or treatment facility and is approved by
the executive officer as consistent with the provisions of the nursing
service scholarship program and as consistent with any rules and
regulations relating thereto adopted by the state board of regents in
accordance with the provisions of K.S.A. 74-3297, and amendments
thereto.
Sec. 4. K.S.A. 74-3295 is hereby amended to read as follows: 74-
3295. (a) Except as provided in K.S.A. 74-3296, and amendments thereto,
upon the failure of any person to satisfy the obligation under any
agreement entered into pursuant to the nursing service scholarship
program, such person shall pay to the executive officer an amount equal to
the total amount of money received by such person pursuant to such
agreement which that was financed by the state of Kansas plus accrued
interest at a rate which is equivalent to the interest rate applicable to loans
made under the federal PLUS program at the time such person first entered
into an agreement plus five percentage points and shall pay to the sponsor
an amount equal to the total amount of money received by such person
pursuant to such agreement which was financed by the sponsor plus
accrued interest at a rate which is equivalent to the interest rate applicable
to loans made under the federal PLUS program at the time such person
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first entered into an agreement plus five percentage points of 5% per
annum. Interest shall begin to accrue on the date of the action or
circumstances that cause such person to fail to satisfy the obligations of
such agreement, as determined by the executive officer based upon the
circumstances of each individual case. Installment payments of any such
amounts may be made in accordance with the provisions of agreements
entered into by the scholarship recipient and the sponsor or if no such
provisions exist in such agreements, in accordance with rules and
regulations of the state board of regents, except that. Such installment
payments shall commence six months after the date of the action or
circumstances that cause the failure of the person to satisfy the obligations
of such agreements, as determined by the executive officer based upon the
circumstances of each individual case on which interest begins to accrue.
Amounts paid under this section to the executive officer shall be deposited
in the nursing service scholarship repayment fund in accordance with
K.S.A. 74-3298, and amendments thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the nursing service scholarship program over to a
designated loan servicer or collection agency, the state not being involved
other than to receive payments from the loan servicer or collection agency
at the interest rate prescribed under this section.
Sec. 5. K.S.A. 74-3296 is hereby amended to read as follows: 74-
3296. (a) (1) Except as otherwise specified in the agreement with the
sponsor, An obligation under any agreement entered into under the nursing
student scholarship program shall be postponed:
(1)(A) During any required period of active military service;
(2)(B) during any period of service as a part of volunteers in service
to America (VISTA);
(3)(C) during any period of service in the peace corps;
(4)(D) during any period of service commitment to the United States
public health service;
(5)(E) during any period of religious missionary work conducted by
an organization exempt from tax under section 501(c)(3) of the federal
internal revenue code as in effect on December 31, 2000 July 1, 2024;
(6)(F) during any period of time the person obligated is unable
because of temporary medical disability to practice nursing;
(7)(G) during any period of time the person obligated is enrolled and
actively engaged on a full-time basis in a course of study leading to a
degree in the field of nursing which that is higher than that attained
formerly by the person obligated;
(8)(H) during any period of time that the person obligated is on job-
protected leave under the federal family and medical leave act of 1993; or
(9)(I) during any period of time the state board of regents determines
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that the person obligated is unable because of special circumstances to
practice nursing.
(2) Except for clauses (6), (8) and (9) paragraphs (1)(F), (1)(H) and
(1)(I), an obligation under any agreement entered into as provided in the
nursing service scholarship program shall not be postponed more than five
years from the time the obligation was to have been commenced under any
such agreement.
(3) An obligation under any agreement entered into as provided in the
nursing service scholarship program shall be postponed under clause (6)
paragraph (1)(F) during the period of time the medical disability exists.
(4) An obligation under any agreement entered into as provided in the
nursing service scholarship program shall be postponed under clause (8)
paragraph (1)(H) during the period of time the person obligated remains
on FMLA leave.
(5) An obligation under any agreement entered into as provided in the
nursing service scholarship program shall be postponed under clause (9)
paragraph (1)(I) during the period of time the state board of regents
determines that the special circumstances exist.
(6) The state board of regents shall adopt rules and regulations
prescribing criteria or guidelines for determination of the existence of
special circumstances causing an inability to satisfy an obligation under
any agreement entered into as provided in the nursing service scholarship
program, and shall determine the documentation required to prove the
existence of such circumstances. Except for clauses (1), (6), (8) and (9), an
obligation under any agreement entered into as provided in the nursing
service scholarship program shall not be postponed unless the
postponement is approved by the sponsor or is otherwise provided for in
the agreement with the sponsor.
(b) An obligation under any agreement entered into as provided in the
nursing service scholarship program shall be satisfied:
(1) If the obligation has been completed in accordance with the
agreement;
(2) if the person obligated dies;
(3) if, because of permanent physical disability, the person obligated
is unable to satisfy the obligation;
(4) if the person obligated fails to satisfy the requirements for
graduation from the school of nursing after making the best effort possible
to do so; and
(5) if the person obligated fails to satisfy all requirements for a
permanent license to practice nursing in Kansas or has been denied a
license after applying for a license and making the best effort possible to
obtain such license; (6) if, because of bankruptcy, loss of licensure or
certification or other failure in the operations of the sponsor, the sponsor
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cannot or will not employ the person obligated; or (7) if the sponsor
releases the person obligated from employment with the sponsor and the
person obligated otherwise completes the terms, conditions and obligations
of the agreement by engaging in the practice of nursing in Kansas.
Sec. 6. K.S.A. 74-3297 is hereby amended to read as follows: 74-
3297. (a) The state board of regents, after consultation with the committee,
may adopt rules and regulations establishing minimum terms, conditions
and obligations which shall be incorporated into the provisions of any
agreement entered into between a sponsor and the recipient of a
scholarship under the nursing service scholarship program. The terms,
conditions and obligations shall be consistent with the provisions of law
relating to the nursing service scholarship program. The terms, conditions
and obligations so established shall include, but not be limited to, the
terms of eligibility for financial assistance under the nursing service
scholarship program, the amount of financial assistance to be offered, the
length of employment with the sponsor required as a condition to the
receipt of such financial assistance, the circumstances under which the
employment obligation may be discharged or forgiven, the amount of
money required to be repaid because of failure to satisfy the obligations
under an agreement and the method of repayment and such other
additional provisions as may be necessary to carry out the provisions of
the nursing service scholarship program. The state board of regents, after
consultation with the committee, shall adopt rules and regulations as
necessary to administer the nursing service scholarship program.
(b) The state board of regents shall provide an annual written report
on the nursing service scholarship program to the senate and house
committees on education.
Sec. 7. K.S.A. 74-3298 is hereby amended to read as follows: 74-
3298. (a) There is hereby created in the state treasury the nursing service
scholarship program fund. The executive officer shall remit all moneys
received from sponsors, which are paid under K.S.A. 74-3294, and
amendments thereto, pursuant to scholarship awards, or from a school of
nursing, which that are paid because of nonattendance or discontinued
attendance by scholarship recipients, to the state treasurer in accordance
with the provisions of K.S.A. 75-4215, and amendments thereto. Upon
receipt of each such remittance, the state treasurer shall deposit the entire
amount in the state treasury to the credit of the nursing service scholarship
program fund. All expenditures from the nursing service scholarship
program fund shall be for scholarships awarded under the nursing service
scholarship program or refunds to sponsors and shall be made in
accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the
executive officer or by a person designated by the executive officer.
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(b) The nursing student scholarship discontinued attendance fund is
hereby abolished. On the effective date of this act, the director of accounts
and reports shall transfer all moneys remaining in the nursing student
scholarship discontinued attendance fund to the nursing service
scholarship program fund.
(c) There is hereby created in the state treasury the nursing service
scholarship repayment fund. The executive officer shall remit all moneys
received for amounts paid under K.S.A. 74-3295, and amendments thereto,
to the state treasurer in accordance with the provisions of K.S.A. 75-4215,
and amendments thereto. Upon receipt of each such remittance the state
treasurer shall deposit the entire amount in the state treasury to the credit
of the nursing service scholarship repayment fund. All expenditures from
the nursing service scholarship repayment fund shall be for scholarships
awarded under the nursing service scholarship program and shall be made
in accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the
executive officer or by a person designated by the executive officer.
Sec. 8. K.S.A. 74-3292, 74-3293, 74-3294, 74-3295, 74-3296, 74-
3297, 74-3298 and 74-3299 are hereby repealed.
Sec. 9. This act shall take effect and be in force from and after its
publication in the Kansas register.
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